Clothing merchant Aeropostale filed for bankruptcy reorganization in May of this year. By late August, following an adverse ruling from the Bankruptcy Court, all going-concern bidders withdrew from the process and the retailer seemed destined for liquidation.

On August 29, as the four-day auction commenced, the consortium simultaneously hammered out the terms of their relationships and submitted the winning bid of $243 million. Kelley Drye attorneys from multiple practice areas, including bankruptcy, corporate, employee benefits, fashion and retail, and trademark and copyright, worked together with their counterparts to conclude a transaction that was approved by the Bankruptcy Court on September 12 and closed on September 15, saving over 7,000 jobs. The brand is expected to re-launch in January with over 400 stores and a significant e-commerce presence. The transaction has potentially written a new chapter in the retail bankruptcy playbook.

Kelley Drye is a full service law firm with a nationally-recognized bankruptcy practice that regularly represents creditors’ committees and other entities in complex chapter 11 cases. Kelley Drye’s creditor-oriented practice is involved in virtually every major retail bankruptcy case, and our award-winning bankruptcy representations have been recognized by the Turnaround Management Association, the Association for Corporate Growth, the Global M&A Network, the M&A Advisor, and The Deal Pipeline.